Indonesian banks tightened their lending standards in the second quarter of 2025 compared to the previous quarter, according to a recent survey by Bank Indonesia (BI).
Looking ahead, the central bank’s survey, which includes responses from over 40 commercial banks representing about 80% of national banking assets, indicates that lending standards are expected to remain largely unchanged in the third quarter.
Despite the stricter standards, banks remain optimistic about credit growth through the end of 2025. This positive outlook is reportedly driven by a promising monetary and economic forecast for Indonesia, along with their ability to effectively mitigate risks when issuing loans.
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